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Sindh objects to setting up new Thar coal body

 Karachi :A meeting chaired by Sindh Chief Minister (CM) Syed Qaim Ali Shah at CM House on Friday raised “serious objections” over the setting up of Thar Coal Mining Company for the utilisation of coal reserves in Thar, terming it as a move to take control of the coal reserves.

“Thar Coal and Energy Board (TCEB) is the only notified legal and authorised body to exercise all powers for deciding matters and aspects pertaining to mining and power generation from Thar coal in the province,” said the chief minister.

During a briefing, the meeting was informed that the proposal for “Thar Coal Mining Company” was floated in October 2006 by placing it on Central Development Working Party (CDWP), but the Sindh government had objected to the move.

On February 15, 2005, then deputy chairman of Planning Commission had made a presentation to the prime minister and the president on “Energy Security Action Plan”, wherein recommendations for the establishment of “National Integrated Coal Mining and Power Generation Authority” on the pattern of WAPDA (a joint venture of federal and provincial governments and local/foreign private sector) were made and approved.

It had been proposed that “Pakistan Coal Development Company”, with an investment of Rs.2 billion from the federal government, would be formed to establish the initial framework to attract foreign investment for coal, which was initially an attempt to take over the coal resources of Sindh. The establishment of Thar Coal Mining Company was approved by CDWP on October 19, 2006 at an estimated cost of Rs241.790 million, including the foreign exchange component of Rs23.70 million.

The meeting was further informed that the Ministry of Petroleum and Natural Resources (P&NR), in its letter dated June 10, 2007, had launched a company namely “Establishment of Thar Coal Mining Company” with 80 per cent share holding for federal government i.e. 20per cent share for Ministry of P&NR, 20 per cent share for National Logistic Cell (NLC) and 40 per cent share for private sector, while only 20 per cent was reserved for the Sindh government.

Under the letter from Mines and Mineral Development Department, the federal government vide its notification dated July 8, 2008 constituted the Thar Coal Authority, which abolished the Thar Coal Mining Company (TCMC). Later, another notification was issued on October 11, 2008 for the withdrawal of Thar Coal Authority after the constitution of Thar Coal and Energy Board. The meeting was informed that CDWP approved two similar schemes of coal gasification and revived TCMC without any consultation from provincial government. 

It was stated that the CDWP approved two similar schemes of coal gasification and also revived Thar Coal Mineral Company, without any consultation from the provincial government. It was further informed that the Sindh government raised objection vide letter dated May 8, 2009 by conveying serious objections and reservations to the deputy chairman of Planning Commission. Besides, the chief minister Sindh, who is also the chairman of Thar Coal and Energy Board, had also talked to the prime minister regarding the situation.

The meeting was informed that TCEB has full support of President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilani and the board would deliver the desired results.

Shah meanwhile also maintained that Gorakh Hill Station, being developed as a tourist 

resort, would soon be completed and opened for common 

people. 

He said that work on Keenjhar tourist spot would be finalised soon, and added that work on Hyderabad–Mirpurkhas dual carriage road would also be initiated soon.

The meeting was attended, among others, by Sindh Minister for Irrigation and Power Syed Murad Ali Shah, Sindh Revenue Minister Jam Saifullah Dharejo, Sindh Minister for Law and Parliamentary Affairs Muhammad Ayaz Soomro, Chief Secretary Sindh Fazal-ur-Rehman, Additional Chief Secretary (P&D) Nazar Hussain Mahar, Secretary to CM Syed Sohail Akbar Shah, Secretary Finance Fazalullah Pechuho, Secretary Mines and Minerals Aijaz Ahmed and others.

The News:Saturday ,May 162009